The journal entry for accrued interest on a note payable includes ________.

A) a debit to Interest Expense and credit to Cash
B) a debit to Interest Expense and credit to Interest Payable
C) a debit to Interest Payable and credit to Cash
D) a credit to Interest Expense and debit to Notes Payable


B) a debit to Interest Expense and credit to Interest Payable

Business

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Don't ___________ color in your presentation

a. trust b. overuse c. alter d. enhance

Business

If a corporation issues shares for less than the stated value, it remains liable to the shareholder for the difference between the stated value and the amount of consideration actually paid

Indicate whether the statement is true or false

Business

Butler Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 12% return on its investments. The present value of an annuity of $1 for different periods follows: Periods12%10.892921.690132.401843.0373  What is the net present value of the machine?

A. $30,000. B. $(3,100). C. $26,900. D. $24,018. E. $(29,520).

Business

Identify three prominent theories that attempt to explain the term structure of interest rates

What will be an ideal response?

Business